There’s plenty of change and increased competition in 2012, both for pharmacy and for the generics industry. Kim Innes, Commercial Director at Teva UK Limited, discusses the generics industry in 2012.
There’s plenty of change and increased competition in 2012, both for pharmacy and for the generics industry. Getting involved with change is vital to most businesses and pharmacy is no different. There will be opportunities for those willing to adapt, engage in consultations and utilise added-value services like MURs and NMS.
Pharmacy is becoming a place to do public health so it’s important to look for a generics provider that offers a wide range of quality services in addition to a wide portfolio.
Busy in Category M
With around £1bn worth of branded products coming off-patent in 2012, it’s going to be a busy and competitive year for the generics market.
We’re excited about making the most from launching
off-patent products so that pharmacists continue to benefit from strong supply, a wide product portfolio and competitive prices.
We’re in a strong year for the patent cliff, and it will be competitive because investment will help for the lean years ahead in 2013 and 2014.
Supply chain is more resilient
With the high value of patent expiries in 2012, there are certainly great opportunities for the generics industry, but we are also expecting competition to grow.
Innovator companies are naturally doing their utmost to hold on to their market share when their patents expire, so it’s tougher for all parties – innovator or generic competitor – to maintain or grow their market share.
Of course, competition can result in low prices that the NHS can afford, making medicines accessible to patients, and creating the financial headroom in the NHS so that it can afford expensive new medicines. It drives innovation: without generic competition, originators wouldn’t have to replace their old products by new innovative ones designed to deal with unmet clinical need. And, because generics are usually supplied by a larger number of companies, the generics supply chain is more resilient.
Overall, the pharmaceutical marketplace is diversifying, and there are more pharmaceutical companies with a presence in both branded and generic markets.
Sustaining diverse income streams
Sustainability will be an issue this year. There are others issues that aren’t specific to the generics industry – such as the changes in the NHS and stock shortages – but all of these things affect pharmacy.
In terms of sustainability, there will be more products in the Category M reimbursement pot, but the same amount of purchasing profit of £500m available for pharmacy. We’ve seen over the past couple of years that the short-term pressure on price simply results in the Government changing reimbursement to keep the retained profit sum at £500 million. As a result, the generics industry is at risk of being unsustainable and its ability to continue to reduce prices is finite.
That £500m purchase profit is a fixed amount, so there’s only a set pot of money to go round and according to data from the PSNC, pharmacy makes just over 30% of its income from purchasing medicines. Looking at the income streams is really important in any pharmacist’s budget – which of course is something that Teva can help with. If you take Teva as an example, we’re not just bringing products to market we’re investing in initiatives that will support pharmacy to help create a more sustainable way that adds value for the health service and benefits its patients.
It’s worth asking what can you get from your generics company – is it a strong balance of product range, competitive pricing, quality, service, packaging and value-added services? We think pharmacy should look at the “whole package” when considering their choice of supplier so they can dedicate more time to looking after and sustaining their business, staff and patients.
What Teva offers as a whole package includes the widest generic portfolio in the UK, with over 700 product lines. We were recently commended for our MUR Advantage Programme and Workshops, which support pharmacists in conducting efficient and effective Medicine Use Reviews, helping to improve the number of patients enrolled for the service and accessing the revenue stream for pharmacy. We have considered the services in other nations, and now have a Chronic Medication Service (CMS) pack for our Scottish customers, and more patient service support materials in the pipeline. Packaging is important to consider also and ours is award-winning and stands out from other generic manufacturer’s packs, which can help with retaining patients and minimising dispensing errors.
New products from day one
In 2012 we’re going to be focussing heavily on getting new products to market from day one of patent expiry and supporting pharmacists through our dedicated sales and customer services teams.
Last year was a year of change for us, as we introduced the TevaOne and TevaTwo generic schemes to make buying our products simpler and offering base and bonus rebates and the PriceWatch service.
This year we’ll be strengthening our supply, adding to our portfolio of over 700 lines, and further supporting pharmacy with useful resources. We think this all adds up to a package that’s really supportive to pharmacy, and together, these are some of the reasons that make Teva UK Limited the number one supplier of generics in the UK.
Fifteen products, fifteen weeks
We’re continuing 2012 with product launches and the launch of patent-expiry products from our strong pipeline. We’ve launched fifteen products in the first fifteen weeks of 2012, including Quetiapine, Desloratadine, Donepezil, Galantamine, Latanoprost, Zolmitriptan and Naratriptan.
Ultimately we want to support pharmacists so they can spend more time growing their business. For more information on how Teva can support you, talk to your local Territory Manager to see the benefits of working with Teva.
New or existing retail pharmacy customers can order through their Territory Sales Manager, Major wholesaler or call the Teva Sales Liaison team on 0800 085 8621 to find out more.
Date of preparation – May 2012, CPE/12/057